“All Set for U.S.-North Korea Summit
United States President Donald Trump and North Korean leader Kim Jong Un arrived in Singapore where their historic meeting will take place on Tuesday. Officials from both countries met to iron out differences prior to the meeting of the two heads of state.
There is a security nightmare in the Lion City and people are complaining about the traffic jams caused by the summit. The country is spending $15 million of taxpayers’ money to host the summit and more than half of that will go to security.
Singapore’s Prime Minister Lee Hsien Loong Lee believes the cost is worthwhile. Lee said, “It is our contribution to an international endeavor which is in our profound interest.”
Trump Lashes Out at NATO Allies
United States President Donald Trump posted a series of ‘tweets’ on Monday lashing out again at Canada and Europe on trade issues. Trump’s tweet read, “Fair Trade is now to be called Fool Trade if it is not Reciprocal.” He is questioning the trading relationships between his country and some of its closest allies.
The U.S. president also claimed that America is responsible for most of the cost of the inter-governmental military alliance, the North Atlantic Treaty Organization (NATO), to protect “the many of these same countries that rip us off on Trade.”
Trump refused to endorse G7 declaration calling for a reduction in various barriers to trade, including tariffs. His latest tweet read, “Sorry, we cannot let our friends, or enemies, take advantage of us on Trade anymore. We must put the American worker first!”
Federal Reserve Readies Rate Hike Announcement
The Federal Reserve is preparing to raise interest rate this coming Wednesday. The rate hike announcement will proceed amid the ongoing spats on trade between the U.S. and the rest of the world. The investors are concentrating on the rhetoric from the G7 leaders after their summit in Canada. Meanwhile, the Feds are focusing on the positive economic data in the U.S.
According to Jim O’Sullivan, chief U.S. economist at High Frequency Economics, the Fed meeting “will almost certainly result in another rate hike, along with the message that continued tightening is likely.” O’Sullivan added that the G-7 leaders “are playing with fire here in terms of all the protectionist talk.”
U.S. Warns ZTE of Shut Down with One More Violation
White House trade adviser Peter Navarro warned Chinese technology company ZTE Corp. on Sunday. Navarro said that if ZTE engages in one more bad activity, it would mean a “shut down” in the U.S.
The lifting of the crippling ban on Shenzhen-based firm will happen soon. ZTE was fortunate to receive a key concession from the U.S. last week. The company finally agrees to pay a $1 billion fine and do a major management shakeup. ZTE will add $400 million in escrow to cover for future violations.
Cyber Intrusion Brings Down Bitcoin Price
Bitcoin price tumbles below $7,000 after hackers attack the South Korean cryptocurrency exchange Coinrail over the weekend. The news sparked a steep fall in the price of the most popular cryptocurrency.
Concerns over security at the virtual currency exchanges becomes an major issue again. Global policy makers continue its struggle to regulate digital asset trading.
Coinrail’s statement on its website said its system was a victim of “cyber intrusion” on Sunday. Their system lost about 30% of the coins traded on the exchange. There was no mention of the equivalent amount of the virtual coins that were stolen. But Yonhap Newsa, a local news outlet, estimates the amount could to about 40 billion won ($37.28 million) worth.